Infosys Announces Bonus Issue, Reports Profit Of Rs 3,612 Crore In April-June

IT major Infosys on Friday posted a net profit of Rs 3,612 crore for the April-June period, missing analysts' estimates. That marked a 2.1 per cent decline in net profit on a quarter-on-quarter basis but a 3.7 per cent increase on a year-on-year basis. Analysts, on average, had expected a net profit of Rs 3,740 crore, according to Thomson Reuters data. Infosys, the country's second largest software exporter, had registered a net profit of Rs. 3,690 crore for the quarter ended March 2018 and Rs 3,483 crore for the quarter ended June 2017. The board of Infosys also approved the issue of one free equity share for every equity share held (1:1 bonus issue), the company said in a regulatory filing.

Infosys posted a revenue growth of 5.8 per cent on a quarter-on-quarter basis and 12 per cent on a year-on-year basis to Rs 19,128 crore for the quarter under review. In dollar terms (constant currency), Infosys reported a revenue of $2,831 million in Q1. That marked a quarter-on-quarter growth of 0.9 per cent, and a year-on-year increase of 6.8 per cent.

"The strong revenue and margin performance in this quarter shows that our dual emphasis on Agile Digital and AI (artificial intelligence)-driven Core services is resonating with our clients", said Salil Parekh, CEO and managing director of Infosys.

Infosys said it recorded a reduction in the fair value amounting to Rs 270 crore in respect of the Panaya business. Infosys had in February this year announced the acquisition of US-based Panaya.

"With our Agile Digital business growing sequentially at 8 per cent in constant currency and increase in our large deal wins to over US$ 1 billion, we see good traction in the market."

Large deal wins crossed $1 billion, of which over 40 per cent was from the financial services business, said Infosys. The IT major's earnings per share (EPS) grew 9.1 per cent on a year-on-year basis. The country's second-biggest software services exporter maintained revenue guidance for the fiscal year ending March 2019 at 6-8 per cent in constant currency terms. The FY19 operating margin guidance has also been retained at 22-24 per cent.

For the financial year ended March 31, 2018, Infosys had reported an increase of 11.7 per cent in its consolidated net profit at Rs 16,029 crore.

Ahead of the June quarter results, Infosys shares closed 1.12 per cent higher at Rs 1,309.10 on the Bombay Stock Exchange (BSE).

Rival Tata Consultancy Services (TCS) had earlier this week posted a net profit of Rs 7,340 crore for the June quarter.